JOHANNESBURG (miningweekly.com) – South Africa-focused coal-miner Coal of Africa Limited (CoAL) has completed its R467-million acquisition of coal-junior NuCoal Mining.
The ASX-, Aim- and JSE-listed company told shareholders in a statement on Tuesday that all suspensive conditions had now been fulfilled.
CoAL initially planned to spend R650-million on acquiring NuCoal, but said that a 10% retention fee and adjustments to reflect the working capital position had resulted in the lower purchase price.
“The acquisition of NuCoal cements CoAL’s position as an emerging South African coal producer, transforming the company into a multi-site producer, well placed to take advantage of the current strength in, and attractive outlook for, global coal markets,” CoAL MD Simon Farrell said.
The coal-miner had announced in October last year that it would raise £59,6-million to fund the NuCoal acquisition, to accelerate capital expenditure (capex) at its Vele and Makhado projects, and to pursue other smaller acquisitions.
At the time, CoAL said that the acquisition would add five existing and future mining operations to its portfolio, while there was also potential to realise synergies through blending NuCoal product with product from the Mooiplaats project, as well as through transporting NuCoal’s product by using its rail and port capacity.
NuCoal’s thermal coal assets were situated close to the Mooiplaats mine, with the NuCoal Woestalleen Colliery, which produced 2,5-million tons a year of saleable coal for the domestic and export markets, already having offtake contracts in place.
The thermal coal producer also had two beneficiation plants in South Africa, one that was fully operational and which produced 350 000 t/y run-of-mine coal and the other, which would start producing again by the fourth quarter of this year.
A further two plants were expected to start producing by next year and another one by 2013.
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